The Cost Of Extreme Weather Is Catching Up

Premiums Continue To Climb As Risks Multiply

Homeowners Insurance Heading Into 2026

Homeowners across the United States are paying more than ever for coverage, as insurers respond to rising construction costs, worsening weather events, and tightening reinsurance markets.

The national average annual cost of homeowners insurance has reached about $2,110, according to NerdWallet, with states exposed to severe weather facing far higher premiums.

In Texas, the average premium has climbed to roughly $4,585, more than double the national average. The trend shows no sign of slowing. Rates rose by about 19 percent in 2024, following a 21 percent increase the year before, according to the Texas Department of Insurance.

The Front Line Of Climate and Cost

Insurers’ growing use of advanced models that account for climate trends, material costs, and regional exposure has had a clear impact on the homeowners insurance market. Combined with higher reinsurance rates and global loss cycles, these factors have driven premiums sharply higher.

At the same time, policy exclusions are expanding. Learn more about policy exclusions here. For example, many regions no longer include wind or hail coverage, forcing residents to buy separate protection from the Texas Windstorm Insurance Association or similar state-backed pools.

In Texas, more than 180,000 homes were struck by hailstones larger than two inches last year, according to Cotality, while nearly $88 billion in property faces moderate or greater wildfire risk. Add to that over 4.7 million homes vulnerable to hurricane winds and it was just a matter of time before we found ourselves in this insurance crisis. Minnesota homeowners are seeing a different side of the same problem: hail claims there have nearly doubled in cost over the past decade, and premiums are projected to rise 15 percent in 2025, one of the sharpest increases nationwide, according to the Insurance Federation of MN.

What This Means For You

The average cost of a hail damage claim in 2013 in Minnesota was $14,968 with an average cost per square (unit = 100 sq ft. area of shingle) of $355. By 2023, the average cost increased to $29,402 or $550/square. That’s nearly double the cost in 10 years time, and the inflation doesn't appear to be slowing down. More importantly, despite raising premiums, homeowners just like you are left on the hook paying a greater percentage out of pocket.

How Can You Protect Your Home

To ensure your home is prepared for that rainy day:

• Choose Wisely: Working with a contractor who is able to ethically maximize the value of your claim, as your policy allows, is more important than ever. It takes a specialized understanding of insurance language, documentation, and local building codes to make sure you get the coverage you deserve. You’ve been paying for it for years! You can find a full list of vetted, trustworthy professionals at Verified, where every contractor is screened for clarity, compliance, and credibility.

• Read Your Policies: Every week, we hear from an alarming number of readers wishing they'd come across this information before selecting their policies. Unfortunately, too many homeowners fall into the same trap of automatically paying their insurance bill each month without truly understanding what their coverage includes. Key phrases to look for include Replacement Cost vs Actual Cash Value, matching endorsements, special wind & hail deductibles, scheduled roof policies, and cosmetic exclusions.

• Upgrade Early & Save Later: One of the smartest ways to protect your home and reduce long-term costs is to strengthen your roof before the next major storm. FORTIFIED roofs use tested materials and installation methods proven to resist damage from wind, hail, and heavy rain. By upgrading before disaster strikes, you reduce the likelihood of major losses and position yourself for potentially lower premiums in the years ahead. Learn more about the FORTIFIED roofing requirements here and ask your insurance agent if your home may qualify.

• Plan Ahead: With deductibles climbing and insurance terms tightening, homeowners should be ready to cover part of their repair costs themselves. Building an emergency fund or securing low interest financing can make all the difference when damage occurs. As President John F. Kennedy reminded us, the time to repair the roof is when the sun is shining.

Take Control Before The Next Storm

We understand your home is your greatest investment. While the cost to protect it may continue to rise, our mission is to keep you equipped to make the best decisions for your home. From the storms hitting Texas to the hail damage seen in Minnesota, homeowners across the country are facing higher premiums and more limited coverage. Understanding your policy, reviewing deductibles and exclusions, and working with knowledgeable, trustworthy contractors can all help reduce risk and out-of-pocket costs. By planning ahead and making informed decisions, you can ensure your home remains protected and your investment secure, even as the insurance landscape continues to evolve. Even small steps today can make a big difference tomorrow. To find a trusted contractor near you, without the stress, check Verified today.

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